Congestion management with social welfare in deregulated power system

Abstract

The electricity market reforms and economic operations provide considerable benefits. One of the most important aims of establishing markets in power system is to promote competition among participants and improve the economy of the region or country. The power system operation fulfilling these objectives has been termed as "Social Welfare". In multitransaction system, the market agents of various transactions try to maximize their welfares which results into optimal social welfare of the system. Sometimes, the agreements of bilateral / multilateral contracts among participants creat operational problems in multi - transaction power markets. These operational problems may be technical or economical.